CHAPTER 57
HB 520 - FINAL VERSION
2021 SESSION
21-0854
10/11
HOUSE BILL 520
AN ACT relative to e-delivery of insurance documents and commercial lines renewal notices.
SPONSORS: Rep. Bartlett, Merr. 19; Rep. Hunt, Ches. 11; Sen. Cavanaugh, Dist 16
COMMITTEE: Commerce and Consumer Affairs
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ANALYSIS
This bill provides for electronic delivery of insurance documents and commercial lines renewal notices.
This bill is a request of the insurance department.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
21-0854
10/11
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to e-delivery of insurance documents and commercial lines renewal notices.
Be it Enacted by the Senate and House of Representatives in General Court convened:
57:1 Automobile Insurance; Cancellation, Refusal to Renew, Notice. Amend the introductory paragraph of RSA 417-A:5 to read as follows:
No cancellation or refusal to renew by an insurer of a policy of automobile insurance shall be effective unless the insurer or its agent either physically [(not electronically)] delivers or mails[,] to the named insured, at the address shown in the policy, a written notice of the cancellation or refusal to renew or electronically delivers to the named insured a written notice of cancellation or refusal to renew. Such notice shall:
57:2 Automobile Insurance; Cancellation, refusal to Renew; Notice. Amend the introductory paragraph of RSA 417-A:5, II to read as follows:
II. State the date on which such cancellation or refusal to renew shall become effective. The effective date shall not be less than 45 days after the date the notice is mailed or physically or electronically delivered to the named insured provided however, the effective date may be 10 days from the date of mailing or physical or electronic delivery when:
57:3 Certain Property and Liability Insurance; Cancellation, Refusal to Renew; Notice. Amend the introductory paragraph of RSA 417-B:4 and the introductory paragraph of RSA 417-B:4, I to read as follows:
No cancellation or refusal to renew by an insurer of a policy of insurance insuring against any of the contingencies set forth in RSA 417-B:1 shall be effective unless the insurer or its agent either physically [(not electronically)] delivers or mails[,] to the named insured, at the address shown in the policy, a written notice of the cancellation or refusal to renew or electronically delivers to the named insured a written notice of cancellation or refusal to renew. Such notice shall:
I. State the date on which such cancellation or refusal to renew shall become effective. The effective date shall not be less than 45 days after the date the notice is mailed or physically or electronically delivered to the named insured provided however, the effective date may be 10 days from the date of mailing or physical or electronic delivery when:
57:4 Commercial Insurance; Notice of Cancellation; Notice of Nonrenewal and Renewals; Premiums. Amend RSA 417-C:2 through RSA 417-C:4 to read as follows:
417-C:2 Notice of Cancellation.
I. No notice of cancellation shall be effective unless mailed [or], physically [(not electronically)] delivered, or electronically delivered by the insurer or its agent to the named insureds at least 60 days prior to the effective date of cancellation; provided, however, that where cancellation is for nonpayment of premium or substantial increase in hazard, or the cancellation notice is mailed, physically delivered, or electronically delivered within the first 60 days of the effective date for new policies, at least 10 days' notice of cancellation shall be given. In all instances, the reason or reasons for cancellation shall accompany or be included in the notice of cancellation. An insurer shall not be held liable in any claim or suit for damages arising solely from the insurer's compliance with the requirement that the reason for cancellation be specified.
II. [Notice of cancellation under this section shall be by certified mail, except that in the case of cancellation for nonpayment of premium, notice shall be by certified mail or certificate of mailing.
III.] The commissioner shall have the authority to waive any provision of paragraph I upon the written request of an insurer specifying the reasons therefor.
[IV.] III. This section shall not apply to nonrenewal.
417-C:3 Notice of Nonrenewal. No insurer shall[ increase renewal premiums more than 25 percent for a 12-month renewal term or] refuse to renew a policy at its expiration or anniversary if written for a term of more than one year unless such insurer or its agent shall mail [or], physically [(not electronically)] deliver, or electronically deliver to the named insureds [at the address shown in the policy,] advance notice of [the proposed renewal premium or] its intention not to renew. The notice shall be at least 60 days in advance of the policy's scheduled expiration or anniversary date. If all or any part of the 60-day notice is not in advance of the expiration or anniversary date, renewal coverage shall be provided on the same terms and conditions as the expiring policy until the 60-day notice requirement has been fulfilled. This section shall not apply [if the insurer has manifested its willingness to renew with a premium increase of no more than 25 percent, or] in case of nonpayment of premium, or if the insured fails to pay any advance premium required by the insurer for renewal. However, notwithstanding the failure of an insurer to comply with this section, any coverage shall terminate on the effective date of any other coverage acquired by the insured to the extent the acquired coverage substantially duplicates coverages of the renewal. Renewal of a policy shall not constitute a waiver or estoppel with respect to grounds for cancellation which existed before the effective date of such renewal.
417-C:4 Renewals; Premiums.
I. Any renewal premium increase in excess of 25 percent is controlled by the provisions of RSA 417-C:3. The notice may indicate that renewal is conditioned upon the premium increase without reference to nonrenewal.
II. Any renewal premium increase of 25 percent or less shall not be implemented until the insured has had a minimum of 30 days' notice of the renewal premium. [If all or any part of the 30 day notice is not in advance of the expiration or anniversary date, renewal coverage shall be provided, on a pro rata basis, at the rates or premiums in effect under the expiring policy until the 30 days' notice requirement has been fulfilled. This paragraph shall not apply if the insured accepts the renewal policy.]
III. If the applicable 60-day notice period required by RSA 417-C:3 or 30-day notice period required by paragraph II is not satisfied in advance of the policy's scheduled expiration or anniversary date, renewal coverage shall be provided, on a pro rata basis, at the rates or premiums in effect under the expiring policy until the applicable 60-day or 30-day notice requirement has been fulfilled. This paragraph shall not apply if the insured accepts the renewal policy.
IV. Development of renewal premium for the purpose of determining the percentage of change from expiring premium shall be based on the same coverages, conditions, and ratable exposures as those contained in the expiring policy.
57:5 New Chapter; Electronic Delivery of Insurance Documents and Notices. Amend RSA by inserting after chapter 420-P the following new chapter:
CHAPTER 420-Q
ELECTRONIC DELIVERY OF INSURANCE DOCUMENTS AND NOTICES
420-Q:1 Purpose and Scope. The purpose of this chapter is to set forth standards and procedures for electronic delivery of insurance documents and notices in a manner that will promote efficient delivery while maintaining consumer protection.
420-Q:2 Delivery Standards and Procedures.
I. Subject to the requirements of this section, any notice to a party or any other document required by law in an insurance transaction or that is to serve as evidence of insurance coverage may be delivered, stored, and presented by electronic means if the electronic means meet the requirements of the RSA 294-E.
II. Delivery of a notice or document in accordance with this section shall be considered equivalent to and have the same effect as any delivery method required by law, including delivery by first class mail, first class mail with postage prepaid, certified mail, certificate of mail, or certificate of mailing.
III. A notice or document may be delivered by electronic means by an insurer to a party pursuant to this section if the following applies:
(a) The party has affirmatively consented electronically, or confirmed consent electronically, in a manner that reasonably demonstrates that the party can access information in the electronic form that will be used for notices or documents delivered by electronic means to which the party has given consent, and the party has not withdrawn the consent.
(b) The party, before giving consent, is provided with a clear and conspicuous statement informing the party of all of the following:
(1) The hardware and software requirements for access to and retention of a notice or document delivered by electronic means.
(2) The types of notices and documents to which the party's consent would apply.
(3) The right of the party to withdraw consent to have a notice or document delivered by electronic means, at any time, and any conditions or consequences imposed in the event consent is withdrawn.
(4) The procedures a party must follow to withdraw consent to have a notice or document delivered by electronic means and to update the party's electronic mail address.
(5) The right of a party to have a notice or document delivered, upon request, in paper form.
IV. An insurer shall take all measures reasonably calculated to ensure that delivery by electronic means results in receipt of the notice or document by the party.
57:6 Effective Date. This act shall take effect 60 days after its passage.
Approved: May 25, 2021
Effective Date: July 24, 2021
| Date | Body | Type |
|---|---|---|
| Feb. 10, 2021 | House | Hearing |
| March 2, 2021 | House | Exec Session |
| March 3, 2021 | House | Exec Session |
| House | Floor Vote | |
| April 20, 2021 | Senate | Hearing |
| April 29, 2021 | Senate | Floor Vote |
| Feb. 10, 2021 | House | Hearing |
| April 20, 2021 | Senate | Hearing |
| April 29, 2021 | Senate | Floor Vote |
May 25, 2021: Signed by Governor Sununu 05/25/2021; Chapter 57; Eff: 07/24/2021
May 27, 2021: Signed by Governor Sununu 05/25/2021; Chapter 57; Eff: 07/24/2021
April 9, 2021: Enrolled (in recess of) 04/09/2021 HJ 7 P. 104
May 17, 2021: Enrolled (in recess of) 04/09/2021 HJ 7 P. 104
May 17, 2021: Enrolled Adopted, VV, (In recess 05/13/2021); SJ 16
May 13, 2021: Enrolled Adopted, VV, (In recess 05/13/2021); SJ 16
April 29, 2021: Ought to Pass: RC 24Y-0N, MA; OT3rdg; 04/29/2021; SJ 13
April 29, 2021: Ought to Pass: RC 24Y-0N, MA; OT3rdg; 04/29/2021; SJ 13
April 21, 2021: Committee Report: Ought to Pass, 04/29/2021; Vote 5-0; CC; SC 21
April 29, 2021: Committee Report: Ought to Pass, 04/29/2021; Vote 5-0; CC; SC 21
April 15, 2021: Remote Hearing: 04/20/2021, 09:30 am; Links to join the hearing can be found in the Senate Calendar; SC 20
April 20, 2021: Remote Hearing: 04/20/2021, 09:30 am; Links to join the hearing can be found in the Senate Calendar; SC 20
April 7, 2021: Introduced 04/01/2021 and Referred to Commerce; SJ 11
April 1, 2021: Introduced 04/01/2021 and Referred to Commerce; SJ 11
April 7, 2021: Reconsider (Rep. Osborne): MF VV 04/07/2021 HJ 5 P. 50
April 7, 2021: Reconsider (Rep. Osborne): MF VV 04/07/2021 HJ 5 P. 50
April 7, 2021: Ought to Pass: MA VV 04/07/2021 HJ 5 P. 6
April 7, 2021: Ought to Pass: MA VV 04/07/2021 HJ 5 P. 6
: Committee Report: Ought to Pass (Vote 19-0; CC) HC 18 P. 5
March 12, 2021: Committee Report: Ought to Pass (Vote 19-0; CC) HC 18 P. 5
March 3, 2021: ==CONTINUED== Executive Session: 03/03/2021 01:30 pm Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/98917516497 (if necessary)
March 2, 2021: Executive Session: 03/02/2021 09:00 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/95215897452
Feb. 2, 2021: Public Hearing: 02/10/2021 09:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/95521072179 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.
Feb. 10, 2021: Public Hearing: 02/10/2021 09:30 am Members of the public may attend using the following link: To join the webinar: https://www.zoom.us/j/95521072179 / Executive session on pending legislation may be held throughout the day (time permitting) from the time the committee is initially convened.
Jan. 12, 2021: Introduced (in recess of) 01/06/2021 and referred to Commerce and Consumer Affairs HJ 2 P. 52
Jan. 6, 2021: Introduced (in recess of) 01/06/2021 and referred to Commerce and Consumer Affairs HJ 2 P. 52